How to reduce employee turnover in your business

The?term ‘employee turnover’?refers to the number of people?who leave?an organisation to be replaced by new staff over?some?time.

Of course,?it’s?good to inject new life and get a fresh perspective from new recruits, but?there’s?a balance to be struck.

A high employee turnover should ring alarm bells for both employees and employers, as it suggests that something about the company, the work environment, or the staff is making people want to leave. While this is in itself a problem, it also gives rise to several other issues.

The problem with high employee turnover

The first and most obvious problem is?the?cost. The?cost of recruiting , onboarding, and training new staff is significant. You?don’t?want to invest this level of resources into someone who stays for three months only to have to repeat the process for their replacement—the costs will accumulate, and you?won’t?get close to seeing a return on your investment.

Along with the negative effect on your bottom line, high employee turnover will also impact your team. The best and most effective teams are carefully constructed, with an optimal?balance of personalities ?and skill sets. If?you’re?constantly adding new people into the mix and losing others, this balance is thrown completely off course, and time is wasted on getting to know people and how they work best rather than cracking on with the job at hand.

It also?won’t?help your business if you constantly replace people, no matter your industry.?Accumulated knowledge and skill are?hugely?valuable and key to providing outstanding and consistent?service to your clients or customers.?When you lose people, you lose relationships and expertise?that are tremendously valuable and take time to build.

It should be clear now that you want to do everything you can to retain good people once?you’ve?found them, trained them, and integrated them into your business.

But how do you do this?

When looking at ways to reduce employee turnover, the most logical starting point is to ask?what makes people want to leave a company.

Perceived lack of progression

If someone?can’t?see a future at your company, they will leave;?it’s?just a matter of when. Understandably, when that first opportunity comes knocking,?they’ll?be off.

Nobody likes to stagnate, and?how mundane would life be if you knew that nothing would ever change??Whilst some level of self-motivation is required of any good employee, you?can’t?expect people to work hard, push themselves, and seek out challenges only to feel like?they’re?beating their head against a brick wall when it comes to getting a promotion, a pay rise, a training opportunity, or just a clear trajectory for the future.

You will never be able to manage turnover if your staff see their role – or worse, your company – as a stopgap, a short-term stepping stone on the way to somewhere else.?You can be sure that the?‘somewhere else’?will?be benefiting?from the best of what they?have to?offer, not you.

You can help to stop their eyes from wandering by making your company an attractive long-term prospect.?You can do this by ensuring your employees have?clear goals and opportunities?and that you are?transparent, forthcoming and encouraging about their future prospects. Show them that there is a career path for them to follow, with clear signposts, and they will likely follow it.

If you operate in multiple cities, offer an?employee relocation ?benefit that will?give them an opportunity?to move to another city or country and develop their skills to boost their career and become a?greater?asset to the company. It needs to feel like?a place where?they’ll?be nurtured, valued, and encouraged to grow.

Beating turnover by making employees feel valued

If your staff feels like just another cog in the corporate machine, they may?begin to?feel tired, disillusioned, and unmotivated.

If they?don’t?feel seen and valued for who they are and what they?specifically?bring to the table, they might wonder if this is the best place for them and if the grass might be greener elsewhere?

To keep hold of your best people, your company needs to feel like a place where they are seen, appreciated, and encouraged to grow.

There are many ways in which you?can communicate to someone that they are valued.

Trust?is a big one.

You can show employees that you trust them by?not micromanaging, giving them the?freedom?to do their job, sharing information, and?empowering them to make decisions?that drive the company forward.

Make sure you follow up on this with recognition and reward. Remember that?not everybody is motivated by the same things. Inevitably, some will see their value reflected in financial terms and respond well to bonuses, regular pay reviews, and other such incentives. Others feel valued when?they are?given more responsibility and entrusted with more business-critical tasks and decisions.

Get to know your people and what drives them, and?ensure they get the feedback and recognition they need.

Impact of burnout on employee turnover

Another contributor to high employee turnover, and a particularly concerning one, is burnout. Burnout occurs when?someone’s?work life is?so intense and relentless, so draining, that they reach a point where they cannot go on any longer and quit.

This is more common in fast-paced, competitive?‘dog eat?dog’?industries and in work cultures where asking for help is seen as a sign of weakness or an inability to do?one's?job.

In this scenario, if you?can’t?keep up, it can feel like the only option is to walk away.

Suppose you regularly lose employees due to burnout. This could be a sign that something is not right in the work environment: that?you’re?using the wrong strategies to motivate people and not providing the support employees need.

An?employee assistance program ?(or EAP) can be a great resource for helping staff members get the support they need through a difficult time in a confidential setting. Using an EAP can contribute to your employment offering,?which is?designed to attract great people and keep them happy throughout their?career?with your company.

In the best-case scenario, your staff do not need counselling for a work-related issue. People should return home from work healthier than when they left. Team members should be able to ask for help or admit if they are struggling. Always consider your company culture and the way people are required to work. Does it help to get the best out of everyone?

You may be in an?industry that is?unavoidably fast-paced and stressful – if so, have processes in place to manage this.?Encourage people to?take time away ?when needed, and communicate the importance of identifying a problem early rather than letting it reach crisis point – better a day off to reset and recharge than two weeks of sick?leave,?or a lost team member.

Recognise that physical and mental health go hand in hand, ensure?your?sickness policy ?reflects this and that your staff know they will be supported in keeping themselves fit for work,?physically ?and mentally.

Employee turnover is an inevitable part of running any business and is?not always bad.

The main thing is that?it’s?managed, that?you’re?not losing people as fast as?you’re?recruiting them, for reasons unknown.

In all of the above scenarios,?communication and engagement are?key.

Check-in?with your employees, encourage people to?speak-up, but?don’t?just wait for them to come to you.

Be proactive. Rather than a simple?“everything okay?”?ask open-ended questions like,?“How are you getting on with X?”?and never settle for?“fine.”

Employees can thrive in an open, transparent and supportive culture, especially when regularly presented with new opportunities, responsibilities, and challenges. A place where people feel good is a place where?they’ll?want to stay .

Focus on making your workplace that place for them, and?you’ll?have a happy and thriving team that never wants to leave!

This article was written by Phil Norton and originally published on the Leave Dates blog .